Oil prices edged higher on Thursday after U.S. President Donald Trump said that Indian Prime Minister Narendra Modi had agreed to stop importing oil from Russia, a move that could tighten global supply.
Brent crude futures climbed 56 cents, or 0.9%, to $62.47 a barrel by 06:55 GMT, while U.S. West Texas Intermediate (WTI) futures advanced 58 cents, or 1%, to $58.85.
Rebound After Recent Losses
The uptick followed a sharp slide in the previous session, when both benchmarks touched their lowest levels since early May. Prices were pressured by renewed trade tensions between the U.S. and China and a warning from the International Energy Agency (IEA) about a potential supply glut in 2026 as OPEC+ and other producers ramp up output amid weakening demand.
On Wednesday, Trump said that India — which sources roughly one-third of its oil imports from Russia — would halt purchases, and that Washington would now seek a similar commitment from China. The move is part of a broader U.S. strategy to reduce Moscow’s energy revenues and pressure the Kremlin toward peace negotiations in Ukraine.
India’s Measured Reaction
India’s foreign ministry responded Thursday, stressing that the country’s “two main goals were to ensure stable energy prices and secure supply.” The statement made no mention of Trump’s remarks.
According to three sources cited by Reuters, some Indian refiners are preparing for a phased reduction of Russian crude imports over the coming months.
U.S. Treasury Secretary Scott Bessent also said Wednesday that he informed Japanese Finance Minister Katsunobu Kato of Washington’s expectation that Japan will also wind down Russian energy imports.
India and China remain the two largest buyers of Russian seaborne crude, which is under sanctions from the U.S. and EU. Modi has previously defended the purchases as critical to India’s energy security.
“At the margin, this is a positive development for the crude oil price as it would remove a big buyer (India) of Russian oil,” said Tony Sycamore, market analyst at IG Group.
New Sanctions and Inventory Data in Spotlight
The U.K. government also rolled out fresh sanctions against Rosneft and Lukoil, targeting four oil terminals, Chinese refiner Shandong Yulong Petrochemical, 44 tankers in Russia’s “shadow fleet,” and Nayara Energy Limited, a Russian-owned refinery in India.
Attention now turns to U.S. inventory data from the U.S. Energy Information Administration (EIA) later Thursday. Earlier figures from the American Petroleum Institute (API) showed a 7.36 million barrel increase in U.S. crude stocks for the week ending October 10, along with a 2.99 million barrel rise in gasoline inventories and a 4.79 million barrel drop in distillates.
The decline in distillate stocks suggests firmer diesel demand, but the build in crude and gasoline points to sluggish overall consumption in the U.S., the world’s largest oil consumer. Analysts expect U.S. crude inventories to have grown by about 0.3 million barrels last week.
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